Contracts - Written or Verbal
by Bob Brolhorst
Contracts - Written or Verbal
By Bob Brolhorst
As business on the internet grows by leaps and bounds it is the boundaries
of the internet that have become far less obvious. The boundaries that I
am talking about are the same boundaries that seperate states and countries.
We as business people preforming tasks or selling our products are using verbal
contracts in our businesses mainly because of the distance between our
customers. When does a verbal agreement become a contract?
When a customer inquires about the price you charge for a product or service,
you provide an estimate, either verbally or in writing. The two of you
negotiate the terms, the work is completed and delivered... and you wait for
payment. Is this a contract? Yes. You delivered the goods and expect to receive fair compensation. But a court may not agree with
you when it comes to what constitutes "fair" compensation. That's when a
written contract is vital.
If you provide payment terms, make sure those terms require acceptance
of a written estimate before the work begins. Once the first payment is
made on the bill, the client has acknowledged receipt and price. That
payment and the bill that had precipitated the payment validate a contract
in many jurisdictions. That is why I always have and attorney on retainer.
On all projects priced over $500, I require a 50% deposit. This deposit,
of course, is accompanied by a written agreement of what the deposit
covers and how the balance is to be handled. When the work is completed
and delivered the remaining 50% of the bill will be paid. Make sure when
you send the final bill that you note on it how it was paid, by cash,
money order, credit card, or check. Besure to include on the invoice
numbers from the various payment methods
Most of our projects are handled on a COD basis. The client pays the bill
in full when the project is delivered. This payment may be by credit card,
cash, or check. If payment is made in cash, the invoice is marked "paid in
full by cash." If payment is made by check, the invoice number is written
on the front of the check.
Verbal contracts are rough. There's nothing safer than a written contract.
But not all projects call for a written contract. Provide a written estimate
that both of you acknowledge by signature. That may usually suffice.
In summary, verbal contracts can be held up in a court, but check with an
attorney or small claims court in your state to determine what they
constitute as a valid verbal contract.
Bob Brolhorst
Wave 5 Marketing
bbrolhorst@wave5marketing.com
http://www.wave5marketing.com
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